Author
Topic: Why can't I make a profit? (Read 6783 times)

ngaira

Yes that sounds right. But the moment I adjust prices upwards (even slightly - say a 7% increase). The LF pluments terribly which then leaves you making real losses. So am kinda stuck. Right now am trying to cut back routes and see what happens but its gona all wrong for me

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coatedmoney

Yes that sounds right. But the moment I adjust prices upwards (even slightly - say a 7% increase). The LF pluments terribly which then leaves you making real losses. So am kinda stuck. Right now am trying to cut back routes and see what happens but its gona all wrong for me

7% is quite alot... you should still be able to clear profits with higher fuel prices just ensure your flying full planes IE, routes with sustainable competition... or if the routes have to much competition and you still want to fly them, you need to be discounting not increasing and this should if your flying full planes (or near enough) still clear a profit!

if you do need to increase prices do it gradually ie 1 or 2 percent here and there

L1011fan

I have had the same problem in that I have a hub at large, but virtually under utilized airport. The airport can handle fully loaded 747-400's (which I don't use). All of my routes are pretty unchallenged and longer in range and for the most part the routes are to major cities showing a lack in service with room for much more. Yet I go in and add, say, 162 seats on a route that has demand for over 400 seats in Y and yet it still operates in the red. I have decreased prices, increased prices, and everything in between on these particular routes. One route I found (surprise!) is one that needed a substantial fare increase and the route started making profits. Go figure. Any ideas, tricks, experience with this or just an explaination as to how this comes about?

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coatedmoney

I have had the same problem in that I have a hub at large, but virtually under utilized airport. The airport can handle fully loaded 747-400's (which I don't use). All of my routes are pretty unchallenged and longer in range and for the most part the routes are to major cities showing a lack in service with room for much more. Yet I go in and add, say, 162 seats on a route that has demand for over 400 seats in Y and yet it still operates in the red. I have decreased prices, increased prices, and everything in between on these particular routes. One route I found (surprise!) is one that needed a substantial fare increase and the route started making profits. Go figure. Any ideas, tricks, experience with this or just an explaination as to how this comes about?